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Third Quarter State Exports Leap 11 Percent to $5.4 Billion

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·  Minnesota exports (including agricultural, mining and manufactured products) were valued at $5.4 billion, the highest quarterly value since late 2014. Exports grew almost 11 percent (or $525 million) between the third quarters of 2016 and 2017. U.S. exports grew 5 percent during this period.

·  Between the first nine months of 2016 and 2017, Minnesota exports increased 8 percent, while U.S. exports grew 6 percent.

·  Minnesota manufactured exports grew 10 percent to about $5 billion in the third quarter of 2017. U.S. manufactured exports grew 4 percent.
Figure 1. Positive Export Growth for 40 States

Decline 0% Growth

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Sales to North America, Asia and the European Union Show Largest Gains

·  Exports to North America were up 11 percent to $1.8 billion. Increased demand for ores/slag/ash (up $86 million to Canada), cereals (up $40 million to Mexico, primarily corn) and machinery (Canada, Mexico) fueled overall growth in Canada ($1.2 billion, up 14 percent) and Mexico ($659 million, up 7 percent).

·  Export growth in Asia (up 8 percent to $1.8 billion) was driven by Japan (up 37 percent; mainly due to iron ore and optics/medical sales). With gains exceeding $10 million each, China ($615 million, up 2 percent), India ($54 million, up 27 percent) and the Philippines ($125 million, up 10 percent) also performed well.

·  Exports to Europe grew 10 percent, led by Germany ($246 million, up 32 percent), the U.K. ($139 million, up 16 percent), Poland ($45 million, up 52 percent) and the Czech Republic ($18 million, up 112 percent).

·  New Zealand ($67 million, up 115 percent) and Australia ($107 million, up 18 percent) drove export gains to the Australia-Pacific region ($174 million, up 42 percent).

·  Sales grew 13 percent to each Central & South America ($271 million) and the Middle East ($101 million) – largely influenced by increased railway exports, which grew $20 million to Brazil and $5 million to U.A.E.

Figure 2. Exports and Trends Among Minnesota’s Top 10 Markets, Third Quarter 2017

Country / Exports in Millions of dollars, 2017-Q3 / Percent change 2016-Q3 to 2017-Q3
World / 5,371 / 11%
Canada (1) / 1,156 / 14%
Mexico (2) / 659 / 7%
China (3) / 615 / 2%
Japan (4) / 368 / 37%
Germany (5) / 246 / 32%
Korea (6) / 208 / -4%
Belgium (7) / 152 / -2%
Singapore (8) / 148 / -7%
U.K. (9) / 139 / 16%
Philippines (10) / 125 / 10%
Other / 1,556 / 12%

Iron Ore, Optics/Medical, Electrical Machinery and Plastics Drive Export Growth

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·  Between the third quarters of 2016 and 2017, global sales of ores, slag, and ash; optic and medical goods; electrical machinery; plastics; and machinery each increased by more than $50 million.

·  Sales of ores, slag and ash surged 769 percent to $135 million. Canada ($88 million, up from $1 million) and Japan ($48 million, up from $4 million) fueled this growth. These products primarily consist of iron ores.

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·  Global sales of optic and medical products increased by $118 million to $1 billion. Growth was strongest in Japan ($144 million, up 44 percent), Korea ($90 million, up 43 percent), China ($167 million, up 15 percent), Germany ($52 million, up 25 percent) and the United Kingdom ($32 million, up 37 percent).

·  Integrated circuits (up 19 percent), switches (up 30 percent) and telecommunications equipment (up 14 percent) drove growth in electrical machinery. Germany (up 52 percent), China (up 13 percent), Australia (up 77 percent) and Canada (up 10 percent) led in export gains.

Figure 3. Exports of Optics, Medical Goods

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·  Plastics products exports jumped 23 percent as demand increased for flat plastic products, such as plates, sheets and film (led by China, Germany and Singapore) and primary polyether forms (led by Mexico).

·  Canada ($189 million, up 24 percent) and Mexico ($118 million, up 13 percent) primarily drove growth in machinery exports. But smaller markets such as the Czech Republic ($11 million, up 135 percent), Oman ($7 million, up 626 percent) and Bangladesh ($6 million, up from $211,000) also made remarkable gains. Product segments such as centrifuges/filters (up 21 percent), machinery for working plastics (up 60 percent), and parts for material-moving or construction machinery (up 50 percent) showed strong growth.

Figure 4. Exports and Trends Among Minnesota’s Top 10 Products, Third Quarter 2017

Product / Exports in millions of dollars / Percent change
Total / 5,371 / 11%
Optics, Medical / 1,020 / 13%
Machinery / 822 / 8%
Electrical Machinery / 701 / 14%
Vehicles / 366 / -5%
Plastics / 364 / 23%
Ores, Slag, Ash / 135 / 769%
Aircraft, Spacecraft / 129 / 8%
Food By-Products / 126 / -13%
Pharmaceuticals / 104 / 29%
Stone, Plaster, Cement / 90 / 14%
Other / 1,515 / 5%
Minnesota Quarterly Export Statistics is the most current resource available for tracking the state’s manufactured export trends and is prepared for the Minnesota Trade Office (MTO) by the Department of Employment and Economic Development’s (DEED) Economic Analysis Unit (Thu-Mai Ho-Kim). The quarterly and annual statistics reports primarily cover export data based on the Harmonized Tariff System (Schedule B), collected by the U.S. Department of Commerce (USDOC) and distributed by IHS Maritime & Trade. Reports are available on DEED’s website at “Export and Trade Statistics” (http://mn.gov/deed/data/export-stats/).